FOREIGN CURRENCY SAVING INCREASING, LOANS STAGNATING

ZAGREB, June 26 (Hina) - A strong increase of foreign currency saving, which along with the recovery of money supply has resulted in high increase rates of liquid assets, and the continuing stagnation of crediting are the basic characteristics of monetary developments in Croatia in April. According to the Croatian National Bank (HNB) bulletin for June, the total nominal increase of foreign currency savings in the first four months of this year amounted to 2.9 billion kuna (7.8 percent) and foreign currency deposits in late April amounted to 39.8 billion kuna. According to HNB analysts, the fact that clients again trust the Croatian banking system and the overall atmosphere of stability, as well as the belief that the banking crisis has been overcome, have caused the high increase rates of foreign currency saving. Money supply has been increasing continually since February and in late April it amounted to 13.3 billion kuna. At the same time, the three-month growth trend has still not compensated for a significant decrease of 1.6 billion kuna in January, but the increase of money supply has been continual and stable since then. However, crediting is still stagnating. In the first four months the amount of granted loans increased only by 400 million kuna or 0.7 percent, which is the same rate as the one in the same period last year. Also stagnating is the crediting of citizens, whereas loans to companies have increased minimally. According to the HNB bulletin, bank loans to the private sector in late April amounted to 56.2 billion kuna. (hina) jn rml